Trump Administration Proposes $103,265 Fee for H-1B Visas
The Department of Homeland Security proposed a $103,265 fee for H-1B visa petitions to recover federal costs and encourage the hiring of American workers.
The United States Department of Homeland Security proposed a new regulation on August 24, 2026, establishing a $103,265 fee for H-1B visa petitions subject to the annual 85,000-visa cap. This fee, which would be payable at the time of filing, aims to generate approximately $8.8 billion annually to recover administrative costs for agencies including U.S. Citizenship and Immigration Services, Customs and Border Protection, and Immigration and Customs Enforcement.
This regulatory approach follows a June 2026 ruling by U.S. District Judge Leo Sorokin, who voided a previous $100,000 fee imposed by presidential proclamation, characterizing it as an unlawful tax. Unlike the previous attempt, the new proposal applies to all cap-subject petitions, including those for workers already in the U.S. and advanced degree holders, though nonprofit universities and hospitals remain exempt. The administration is also considering a $100,000 charge for the Optional Practical Training program and the elimination of the 60-day grace period for unemployed H-1B workers.
President Donald Trump and Vice President JD Vance argue the fee prevents employers from suppressing wages and incentivizes the hiring of qualified Americans. However, the United States Chamber of Commerce and various Democratic-led states have challenged the measure, arguing that only Congress has the authority to impose such taxes. Business groups and advocacy organizations warn the cost is prohibitive for startups and small businesses and could push high-value jobs overseas. The proposal is currently open for a 30-day public comment period.
